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TEAM RANDOLPH NCO ORIENTATION COURSE Financial Planning Value of Time Common Misconceptions Developing Your Plan When to Begin How to Begin Tips for Success Final Thoughts –"When it is a question of money, everyone is of the same religion. – Voltaire, French writer and philosopher Overview

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TEAM RANDOLPH NCO ORIENTATION COURSE When it is a question of money, everyone is of the same religion. –Voltaire, French writer and philosopher FINANCIAL PLANNING

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TEAM RANDOLPH NCO ORIENTATION COURSE Plan First –"Though usually overlooked, setting up a good personal budget is the first step to any money management activity. Without it, you cannot control your finances and will always fall short of your goals. - Mark J. Randall, Certified Financial Planner –No one plans to fail, they just fail to plan Planning is crucial to achieve a desired result FINANCIAL PLANNING

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TEAM RANDOLPH NCO ORIENTATION COURSE Compoundingyour moneys best friend –A – Age 21$100/Month X 10Yrs = $12,000 –B – Age 35$100/Month Till Age 65 = $36,000 –8% Annual Growth till Age 65 A = $300,053 B = $150,030 –If A continued $100/Month till Age 65 = $52,800 –+ 8% Annual Growth = $489,120 Start nowsomething is better than nothing –The best place to start is where you are with what you have. - Charles Schwab, Industrialist/Banker VALUE OF TIME

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TEAM RANDOLPH NCO ORIENTATION COURSE You must suffer to maintain a budget –You are already Budgeting –Reactive not Proactive –Free up moneyeliminate waste Budgets are for those in financial trouble –Avoid trouble –Handle crises Takes more time –Upfront work –Easier in the long term COMMON MISCONCEPTIONS

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TEAM RANDOLPH NCO ORIENTATION COURSE Keep it simple and easy Communicate with and involve family Define goalsplan is roadmap to achieve goals UnderstandablePrimary and Alternate CustomizableFlexible Build in funrewards Organizationnot penny-pinching Knowledge and Understandingnot rules Should let you know how much you have now DEVELOPING YOUR PLAN

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TEAM RANDOLPH NCO ORIENTATION COURSE NOW!! A change in your marital status An addition to the family A new job A PROMOTION, or a raise A new home Retirement A major purchase January 1st (or the beginning of any month) WHEN TO BEGIN NOW!!

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TEAM RANDOLPH NCO ORIENTATION COURSE Where does your money go? –Look up the past Bills Checkbook Bank Statements –Track your spending for one – three months Keep a log of every penny At least one full cycle of your money Eye-opening experience You will be surprised HOW TO BEGIN

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TEAM RANDOLPH NCO ORIENTATION COURSE Make impulse buying difficultleave checkbook, credit cards at home Make savings an "expense" item Make debt repayment an "expense" itemthis is what credit counselors do for you –Pay off the highest interest rate cards first –Don't use credit cards again until balance is paid off –After a loan is paid off, keep paying the loan amount to yourselfmake a vacation fund, or next car fund TIPS FOR SUCCESS

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TEAM RANDOLPH NCO ORIENTATION COURSE Have some fun money for each family member Budget for a fun item Plan with one income Don't divide couple's paychecks functionally Don't over categorize your budgetsimplicity Use an interest-bearing checking account Set aside money monthly, for bills that are due quarterly, semi-annually, or yearly TIPS FOR SUCCESS

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TEAM RANDOLPH NCO ORIENTATION COURSE Reconcile your budget at least once a month; when reconciling your checking statement Make sure to mark your last reconcile point in your budget Try to get utilities or banks to change due dates of bills to make your work easier Remember: just the act of identifying your expenses is extremely valuable Be Proactivenot reactive TIPS FOR SUCCESS

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TEAM RANDOLPH NCO ORIENTATION COURSE Keep future in mind Involve everyone Review annually or when there is a change TIPS FOR SUCCESS

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TEAM RANDOLPH NCO ORIENTATION COURSE Plan for your future –Budget is a tool –Roadmap to your goals Start NOW!! –Benefits of compounding –Establish a habit for life Be proactive FINAL THOUGHTS

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TEAM RANDOLPH NCO ORIENTATION COURSE Define Goals –Develop plan to achieve goals –Keep it easy and understandable –Involve entire family Get organized and get started FINAL THOUGHTS